PRIA, Government Policy, Made Personal

Summary

Treats a taxpayer’s private tax advice from a federally authorized tax practitioner the same as private advice from an attorney, but only for noncriminal tax matters before the IRS and for noncriminal federal tax cases involving the United States. Federally authorized tax practitioner: a person allowed to practice before the IRS and regulated under section 330 of title 31, United States Code. Tax advice: advice about matters the practitioner is allowed to handle. The rule does not cover written communications used to promote someone’s direct or indirect participation in a tax shelter (see section 6662(d)(2)(C)(ii)), including messages to the person, that person’s officers, employees, agents, representatives, or anyone with a capital or profit interest.

Title 26, §7525

Internal Revenue Code, Source: USLM XML via OLRC

(a)Uniform application to taxpayer communications with federally authorized practitioners

(1)General rule

With respect to tax advice, the same common law protections of confidentiality which apply to a communication between a taxpayer and an attorney shall also apply to a communication between a taxpayer and any federally authorized tax practitioner to the extent the communication would be considered a privileged communication if it were between a taxpayer and an attorney.

(2)Limitations

Paragraph (1) may only be asserted in— (A)

(B)any noncriminal tax proceeding in Federal court brought by or against the United States.

(3)Definitions

For purposes of this subsection

(A) Federally authorized tax practitioner

(B)Tax advice

The term “tax advice” means advice given by an individual with respect to a matter which is within the scope of the individual’s authority to practice described in subparagraph (A).

(b)Section not to apply to communications regarding tax shelters

The privilege under subsection (a) shall not apply to any written communication which is—

(1)between a federally authorized tax practitioner and—

(A)any person,

(B)any director, officer, employee, agent, or representative of the person, or

(C)any other person holding a capital or profits interest in the person, and

(2)in connection with the promotion of the direct or indirect participation of the person in any tax shelter (as defined in section 6662(d)(2)(C)(ii)).

Notes & Related Subsidiaries

Editorial Notes

Amendments

2004—Subsec. (b). Pub. L. 108–357 amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “The privilege under subsection (a) shall not apply to any written communication between a federally authorized tax practitioner and a director, shareholder, officer, or employee, agent, or representative of a corporation in connection with the promotion of the direct or indirect participation of such corporation in any tax shelter (as defined in section 6662(d)(2)(C)(iii)).”

Statutory Notes and Related Subsidiaries

Effective Date

of 2004 Amendment Pub. L. 108–357, title VIII, § 813(b), Oct. 22, 2004, 118 Stat. 1581, provided that: “The amendment made by this section [amending this section] shall apply to communications made on or after the date of the enactment of this Act [Oct. 22, 2004].”

Effective Date

Pub. L. 105–206, title III, § 3411(c), July 22, 1998, 112 Stat. 751, provided that: “The

Amendments

made by this section [enacting this section] shall apply to communications made on or after the date of the enactment of this Act [July 22, 1998].”

§7525 Confidentiality Privileges Relating to Taxpayer Communications

Summary

Title 26, §7525

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Amendments

Citations & Metadata